CSB Butterfly Strategy
CSB (VictoryShares US Small Cap High Div Volatility Wtd ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
This ETF, the VictoryShares US Small Cap High Div Volatility Wtd, gives investors access to a curated selection of U.S. small-capitalization stocks that distribute dividends. It differentiates itself by sidestepping the common constraints found in conventional market-cap or yield-based weighting methods. The fund's aim is to replicate the performance of the Nasdaq Victory US Small Cap High Dividend 100 Volatility Weighted Index, prior to accounting for any fees and expenses.
CSB (VictoryShares US Small Cap High Div Volatility Wtd ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $263.2M, a beta of 0.70 versus the broader market, a 52-week range of 56.14-68.02, average daily share volume of 9K, a public-listing history dating back to 2015. These structural characteristics shape how CSB etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.70 places CSB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CSB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on CSB?
A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration.
CSB snapshot
As of August 14, 2026, spot at $68.27, ATM IV 23.90%, IV rank 17.96%, expected move 6.85%. The butterfly on CSB below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 98-day expiry.
Why this butterfly structure on CSB specifically: CSB IV at 23.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a CSB butterfly, with a market-implied 1-standard-deviation move of approximately 6.85% (roughly $4.68 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CSB expiries trade a higher absolute premium for lower per-day decay. Position sizing on CSB should anchor to the underlying notional of $68.27 per share and to the trader's directional view on CSB etf.
CSB butterfly setup
The CSB butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CSB at $68.27 on that close, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CSB chain at a 98-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 CSB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $65.00 | $4.93 |
| Sell 2 | Call | $68.00 | $3.88 |
| Buy 1 | Call | $71.00 | $2.35 |
CSB butterfly risk and reward
- Net Premium / Debit
- +$47.50
- Max Profit (per contract)
- $340.70
- Max Loss (per contract)
- $47.50
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 7.173
Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit.
CSB butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CSB. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$47.50 |
| $15.10 | -77.9% | +$47.50 |
| $30.20 | -55.8% | +$47.50 |
| $45.29 | -33.7% | +$47.50 |
| $60.39 | -11.5% | +$47.50 |
| $75.48 | +10.6% | +$47.50 |
| $90.57 | +32.7% | +$47.50 |
| $105.67 | +54.8% | +$47.50 |
| $120.76 | +76.9% | +$47.50 |
| $135.85 | +99.0% | +$47.50 |
When traders use butterfly on CSB
Butterflies on CSB are pinning bets - traders use them when they expect CSB to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
CSB thesis for this butterfly
The market-implied 1-standard-deviation range for CSB extends from approximately $63.59 on the downside to $72.95 on the upside. A CSB long call butterfly is a pinning play: it pays maximum at the middle strike if CSB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CSB IV rank near 17.96% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on CSB at 23.90%. As a Financial Services name, CSB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CSB-specific events.
CSB butterfly positions are structurally neutral / pin (limited-risk, limited-reward); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. CSB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CSB alongside the broader basket even when CSB-specific fundamentals are unchanged. Always rebuild the position from current CSB chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CSB?
- A butterfly on CSB is the butterfly strategy applied to CSB (etf). The strategy is structurally neutral / pin (limited-risk, limited-reward): A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration. With CSB etf at $68.27 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CSB chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CSB butterfly max profit and max loss calculated?
- Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the CSB butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 23.90%), the computed maximum profit is $340.70 per contract and the computed maximum loss is $47.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CSB butterfly?
- The breakeven for the CSB butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The CSB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CSB?
- Butterflies on CSB are pinning bets - traders use them when they expect CSB to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
- How does current CSB implied volatility affect this butterfly?
- CSB ATM IV is at 23.90% with IV rank near 17.96%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.